Editor's Note:

At a critical juncture in building China into a leading film powerhouse, the Sub-Forum on High-Quality Development of the Film Industry of the Forum on Building up China's Cultural Strength 2025 was successfully held in Shenzhen.

The sub-forum, themed "Passing the Torch, Riding the Momentum", drew industry elites together to discuss breakthrough strategies in the face of challenges. Confronting dual pressures of market structural adjustments and evolving cultural consumption trends, participants engaged in in-depth dialogues on content innovation, technological advancement, and ecosystem development. The discussions highlighted the resilience of Chinese cinema, driven by blockbusters like Ne Zha 2, while also shedding light on more complex issues such as specialized distribution models, talent cultivation, and global outreach.

The sub-forum offered multifaceted solutions for building a modernized film industry system and reviving cultural consumption through policy interpretations, case studies, and strategic exchanges. This marks a new phase of high-quality development for Chinese cinema, rooted in tradition while embracing innovation.

- Article republished from China Film News

Distinguished Guests, Comrades and Friends,

Good morning!

It is a pleasure to meet with you again to discuss the theme of "High-Quality Development of the Film Industry", as we continue to discuss reform, promote development, and plan for the future. On behalf of the Film Bureau of Publicity Department of the CPC Central Committee, I would like to extend a sincere welcome to all attendees. I would like to express my appreciation to the distinguished speakers who have taken time out of their busy schedules to attend this forum. I would like to express my heartfelt gratitude to the China Film Archive, the Publicity Department of the CPC Guangdong Provincial Committee, the Publicity Department of the CPC Shenzhen Municipal Committee, the Bauhinia Culture Group, and the Shenzhen Media Group for your support and assistance in ensuring the smooth organization of this forum. Furthermore, I would like to thank the media friends for your continued support of Chinese cinema.

Over the past year, the film industry has deeply studied and practiced Xi Jinping Thought on Culture, further promoting the industry's prosperous development. Despite experiencing a market downturn after last year's summer season, confronting challenges posed by the rise of short videos and micro dramas, and navigating uncertainties about the future direction of cinema from society, media, and within the industry itself, the film industry has remained true to our original aspirations and forged ahead, continuously delivering new works. This year's Spring Festival blockbusters, notably Ne Zha 2 and Detective Chinatown 1900, have dispelled doubts and uncertainties, unveiling a promising landscape. The impact of Ne Zha 2 is profound - it influences future Chinese film production, market strategies, overseas distribution, the promotion of the "Film+" concept, and the restoration of global cinema confidence. While our market is still undergoing adjustments and experiencing growing pains, the success of Ne Zha 2 allows us to confidently recognize that the creative transformation and innovative development of China's outstanding traditional culture have found a modern mode of expression in cinema. After decades of reform and opening-up, Chinese cinema is now demonstrating high-quality development outcomes. Our market ecosystem, industrial scale, and audience base are robust enough to support the production and returns of high-concept films, as well as the diversified growth of various genres - highlighting the advantages of China's super-sized market. We can proudly assert that no matter how fast-paced society becomes or how diverse entertainment options grow, the audience's craving for a great film remains strong. Cinema continues to represent the pinnacle of visual storytelling, a premium narrative form, and a blue ocean for investment. The film economy's impact remains strong and ready to emerge. Like discovering a new continent, Ne Zha 2 has shown us that film is no longer just film; it is becoming a new engine driving consumption and economic growth.

Of course, we must also recognize that maintaining our advantages and striving for higher goals still faces numerous challenges and difficulties. These deep-rooted structural issues in China's film industry cannot be solved by a single or a few blockbuster films. The supply of film products remains insufficient, particularly with a scarcity of high-quality, entertaining films that meet the viewing needs of a wide audience. There is a scarcity of exceptional creative talent, which is disproportionate to our country's 1.4 billion population. China's film economic policies, in comparison to those of the United Kingdom, Canada, Australia, New Zealand, France, Hungary, and Thailand, still need to be refined and improved. Film enterprises are still small and vulnerable, with limited risk-taking capacity. The market system urgently requires improvement: excessively high production costs for mainstream films raise risks, marketing strategies remain monotonous, the industry relies too heavily on box office returns, and investor confidence must be restored. Furthermore, the increasingly complex online environment, combined with so-called "public sentiment", limits creators' imaginations while also tying regulators' hands.

The Third Plenary Session of the 20th Central Committee of the Communist Party (CPC) of China has sounded the clarion call for a new round of reform. Chinese cinema, building on its glorious past, is duty-bound to continue its pioneering exploration in this transformative process. Chinese cinema reform has always kept pace with the country's progress. Following the requirement for the establishment of a socialist market economy outlined at the CPC's 14th National Congress, Chinese cinema began reforms to adapt to this new economic system. Over roughly a decade, it completely shook off the shackles of the planned economy and established an open national market. Following the CPC's 16th National Congress's directive to vigorously develop the cultural industry, Chinese cinema underwent industrial reform by lowering production, distribution, and screening barriers, transforming film into a venture for the entire society and unleashing its productive forces. Entering the new era, aligned with the national strategy for high-quality development and high-quality opening up, Chinese cinema is now refining its systems and mechanisms to produce more quality works, foster a healthier market, and promote mutual learning among civilizations. Chinese cinema, which was born out of reform, has ingrained a never-ending drive for self-improvement and reform. All of today's challenges require reform as a solution. I hope that all distinguished guests and friends present today will contribute your insights from your respective fields to advance the high-quality development of Chinese cinema and jointly plan for its future. Now I'd like to share some thoughts for our discussion.

We must place greater emphasis on the appeal of films and prioritize literary screenwriting. Many of the issues in Chinese cinema today largely stem from the lack of engaging content and the absence of life's warmth in scripts and stories, which fail to resonate emotionally with audiences. A compelling film should provide spiritual solace by helping us understand the world, explore ourselves, find emotional resonance, and discover hope, courage, and meaning when confronted with life's challenges and questions. A good film must tell a captivating story that guides the audience on a journey of intellectual adventure. Although over the past 130 years, cinema has explored almost every type of story imaginable, we firmly believe that from tales told around campfires to immersive virtual reality narratives, film remains the most concentrated form of storytelling today. It is the best medium for turning chaos into meaning, interpreting human nature, and providing spiritual reflection and aesthetic pleasure. Audiences continue to crave creative and surprising stories - stories that convey lived experiences, bring communities together, transcend individual limitations, and foster identity, social understanding, and empathy. Good films never lack an audience. Last year, the top 20 films collectively earned over 26.2 billion yuan in box office revenue, contributing more than 60% of total ticket sales and admissions while representing less than 4% of all releases. This year, the film Ne Zha 2 alone attracted 320 million viewers. This clearly demonstrates that the audience is always present; the real question is whether we can create better and more engaging films. We encourage creators to immerse themselves in life and ground their work among the people, viewing this as a core methodology of creation. Returning to the essence of cinema, they should reflect deeply on life and human experience, discover new stories to tell, and strive to master the craft and technique of cinematic storytelling. Last week, at the Xia Yan Annual Honorary Screenplay Awards in Hangzhou, the Film Bureau recognized two original and two adapted screenplays. This initiative seeks to encourage the film industry to place a greater emphasis on screenwriting, drawing inspiration from the spirit of Xia Yan and finding forward momentum in the fine traditions of Chinese cinema.

We must place greater emphasis on the cultivation of film talent. Whether we can produce compelling films and tell good stories ultimately depends on whether we have imaginative and creative filmmakers. The imagination and creativity of these artists, who bring the joys and sorrows of human experience to the screen, must be carefully nurtured. All film regulatory departments and production companies must create an environment conducive to the development of film talent. The new forces that the Film Bureau began to promote 10 years ago have now become the backbone of Chinese cinema. New directors are also growing, and we are delighted to see that the directors of films released in the past six months are getting younger. The market is the most fertile ground for talent to emerge and for outstanding works to appear. Today, the Chinese film market is strong enough to generate box office revenue of more than 15 billion yuan for a single film. What great work could not emerge from such a market?! What talent can't find expression and success in such a vast market?! A market of this size will undoubtedly draw top talent. Film management departments and film enterprises across the country must therefore protect and nurture this invaluable market, making it more equitable, just, transparent, and conducive to a positive cycle. Supportive policies and incentives should be implemented, with the cultivation of film talent being a top priority within the larger plan to transform China into a leading film powerhouse.

We must place greater emphasis on studying and respecting the laws of the market. The Film Bureau has consistently advocated for the normalization of regular weekend slots, as well as for films to be distributed in segments across different circuits, regions, and cinema types. The goal is to shift the market from a broad-brush approach toward one that is more refined, diverse, and personalized, ensuring that content receives the respect it deserves. In recent years, we have seen a growing trend of films crowding into major holiday release windows, only to be pulled from theaters due to poor box office performance. At the same time, distributors have become increasingly hesitant to release new films during ordinary periods. This has shrunk the market space for mid- to low-budget films and made it more difficult for young directors to establish themselves. The fierce competition during this year's Spring Festival season, in which six major releases competed for audience attention, resulted in significant losses for several production companies - a situation that should prompt serious thought among both participants and observers. While a crowded release schedule provides audiences with more options, data from the Taopiaopiao platform reveals a sobering reality: even during the seven-day Spring Festival holiday, the average moviegoer purchased tickets only 1.32 times. This is a lesson that must be carefully reviewed. Industry associations should lead studies to determine the optimal number of films for a given release period. As the industry adage goes, "a strong film makes its own release window" - a principle that remains just as relevant today. Therefore, we must continue to emphasize the importance of building up regular weekend slots, encouraging more films to return to these periods. By strengthening the market during ordinary times and building momentum steadily, we can achieve greater success during peak seasons.

We must place greater emphasis on the film economy. During the planned economy period, film companies at all levels operated as public institutions with enterprise-style management. After 1993, they gradually transitioned into fully-fledged enterprises. Subsequent reforms in the distribution and screening mechanisms introduced the concept of the market, leading to the formation of a unified and open film market nationwide. After the 16th National Congress of the CPC, the concept of cultural industries was proposed, and the film industry began its industrialization reform. Enterprises, markets, and industries became integral parts of the film economy - yet these discussions largely centered on the film industry itself. Today, when we speak of the film economy, we refer not only to strengthening the economic foundations of the film industry but also to its role in driving broader socioeconomic development. That is why, before the Spring Festival season, the Film Bureau launched initiatives such as "Follow the Movies on a Journey" and "Savor Cuisine Through Cinema". After the release of Ne Zha 2, the Film Bureau, together with China Media Group, further promoted the "Travel Around China with Movies" campaign. Of course, the economic impact of film extends far beyond these examples. The brand licensing wave triggered by Ne Zha 2 has demonstrated cinema's powerful ripple effects and strengthened public belief in the influence of films. The record-breaking success of Ne Zha 2 is not only a victory for cultural confidence but also a triumph for the film economy. Local authorities should introduce more supportive policies and organize diverse film-themed activities, aligning them with regional economic transformation and upgrading. This will enable content, creativity, technology, and the economy to reinforce and develop one another in a virtuous cycle.

We must place greater emphasis on film technology. Every leap in technological progress has driven revolutions in the art of cinema, while the boundless imagination required by cinematic art, in turn, pushes technological innovation forward. The rise of digital technology, artificial intelligence, and virtual production, in particular, has opened up previously unimaginable possibilities for filmmaking - even propelling cinema on an entirely new developmental trajectory. In recent years, every influential film has been a product of the integration of content and technology. Blockbusters like The Wandering Earth and Creation of The Gods have begun establishing comprehensive industrial production pipelines, while the success of Ne Zha 2 was supported by over a hundred animation and technology companies. On one hand, we should encourage the production of realistic films such as Article 20, Her Story, Big World, and We Girls; on the other, we must recognize that films lacking technological sophistication are unlikely to become mainstream in the future big cultural market or in international competition. Not long ago, the Film Bureau issued a notice promoting the orderly development of virtual reality cinema. After 130 years of evolution, technology has now ushered cinema into the era of spatial storytelling, where "viewing is experiencing" - and where audiences may even become protagonists within the narrative. This is an innovative path with no international precedent, requiring breakthroughs in content, software and hardware R&D, industrial ecosystem development, and standard-setting. We hope that pioneers in this field - such as Xiying Group, Henan TV's Da Xiang Yuan, and Beijing 798 Cultural Industrial Park - will achieve new breakthroughs this year in content creation, hardware and software development, and industrial ecosystem construction. We also encourage content companies with extensive IP digital assets to actively engage in this transformation. On this basis, the Film Standardization Committee will accelerate the establishment of domestic standards while actively participating in the formulation of international standards.

We must place greater emphasis on advancing the higher-standard opening up of Chinese cinema. Filmmakers should adopt a broader perspective, embrace a more inclusive mindset, and engage with greater self-confidence in studying and drawing upon the outstanding artistic achievements created by people around the world. By integrating international and domestic influences, connecting tradition with modernity, we will achieve the flourishing of Chinese cinema in an open and dynamic environment. On March 1 this year, the Second Agreement Concerning Amendment to CEPA Agreement on Trade in Services between the Chinese mainland, Hong Kong, and Macao officially entered its implementation phase. A key provision of this agreement is the "removal of restrictions prohibiting Hong Kong and Macao service providers from investing in film production". Over the past two decades, starting with the initial CEPA framework in 2003, the policy evolved from permitting investments in cinema operations to allowing the establishment of film production studios. This gradual opening has now fully integrated Hong Kong cinema into the development of the mainland film industry. At the same time, we will collaborate with the National Development and Reform Commission and the Ministry of Commerce to promote more open policies that facilitate exchanges and cooperation between Chinese and international cinema. We aim to support more domestic films in reaching global audiences and actively participate in shaping the international cinematic landscape. The rise of China's economy will naturally generate greater interest in Chinese films among overseas viewers. We are confident that what resonates with Chinese audiences, when created in alignment with market dynamics, will also resonate with international audiences. Meanwhile, we are taking measures to encourage more outstanding films from around the world to enter the Chinese market. This effort is geared toward fundamentally reversing the significant decline in the market share of imported films observed so far.

We must place greater emphasis on fostering and supporting the development of a conducive environment for the film industry. The birth of Ne Zha 2 is deeply rooted in fertile ground. At today's forum, we specially invited the Publicity Department of the CPC Sichuan Provincial Committee to share Sichuan's experience in developing its film sector. We also invited representatives from Shanghai, Wuxi in Jiangsu, and Laoling in Shandong to introduce their respective policies and practices for encouraging film development. According to preliminary statistics from the Film Bureau, over 120 countries worldwide have introduced incentive policies for film shooting and post-production to stimulate economic growth, increase employment rates, revitalize tourism, and enhance their cultural soft power. To maintain their leadership in the global creative industries and ensure a continuous flow of creativity, the United Kingdom, for instance, offers a 53% expenditure rebate for films with budgets under £15 million, and productions exceeding that amount can apply for a 40% rebate. In the United States, over 30 states provide production incentives, with some offering support covering up to 45% of qualified expenditures. According to statistics from the Motion Picture Association of America, for every dollar of tax credit provided for film production, $17.75 in economic activity is generated, which in turn contributes $1.88 in new tax revenue to the respective state. We are competing with film productions and studios from around the world. It is our hope that the policies introduced by Sichuan, Shandong, Jiangsu, Shanghai, Guangdong, and other regions will not only attract domestic film investors but also appeal to international ones, thereby establishing a virtuous cycle where creative ideas and compelling stories from the film industry drive the development of culture, tourism, technology, and the broader economy.

Dear friends, the 27th National Film Promotion Conference was held in Xiamen last week, where over 150 new films were intensively promoted. This demonstrates the resilience and renewed determination of Chinese cinema to forge ahead despite challenges. I hope that through this "Sub-Forum on High-Quality Development of the Film Industry", we can pool our wisdom, speak freely, and jointly gather insights and strength to advance high-quality development in the film industry and contribute to building China into a leading film powerhouse. I wish this forum a complete success!

Thank you all!